By the year 2020 it is anticipated that 1 out of every 4 U.S. citizens will be at least 65 years of age. For this reason a number of financial programs are now available specifically directed to senior citizens for the purpose of providing steady income during retirement. Steady income throughout retirement year helps prevent the retired individual from becoming a financial burden upon their children should they outlive their assets. However, if the retiree relies upon a fixed income, the possibility exists that inflation will depreciate the fixed income to a level that may quickly consume their net worth. In an effort to forego such a possibility, numerous programs have been developed to insure the retiree's income.
Conventional passbook saving accounts, certificate of deposits, or bond purchases maintained by an individual provide a predictable flow of income but do not provide a means for maintaining pace with inflation. Similarly, numerous annuity offerings are made available providing the recipient the right to receive fixed periodic payment either for life or for a term of years. Annuities include bonds, trust contingent, deferred group, joint, life, private, refund, retirement, straight, and variable to name a few. The payments represent a partial return of capital and return of interest.
Insurance is a program generally made operative by death providing the beneficiary with proceeds upon occurrence. For a couple in retirement, a spouse typically collects proceeds upon the death of the spouse. Insurance can also be used to provide protection for uncertain costs. U.S. Pat. No. 4,642,768, 4,722,055 and 4,752,877 issued to Robert's discloses a method and apparatus for funding future liability of uncertain costs. The program allows the investor to fund a fairly certain future cost such as a child's college education as well as estimate the expected cost of the liability, when the liability will incur, and the amount of insurance necessary to cover the liability.
What cannot be predicted is how long an individual will live. Therefore, what is needed is a means for providing a senior citizen with a predictable income as well as a means for providing the individual with a statistically method of increasing that income during the remaining lifetime of the individual.